STATE SENATE FORUM: Budget crisis, growth top topics at senate forum

Friday

Oklahoma’s budget crisis, education and attracting new business to the state were the key areas of discussion at Thursday’s state senate District 29 forum, held at Bartlesville City Hall.

The forum, sponsored by the League of Women Voters of Bartlesville, featured Republican candidate Julie Daniels and Democrat Robert Jobe. The two will face each other on the Nov. 8 ballot to replace current state Sen. John Ford, R-Bartlesville, who is unable to run again because of term limits.

Pat Netzer-Willard served as the forum moderator. The candidates gave opening and closing statements. In between, they answered questions submitted by the audience and read by Netzer-Willard. The forum was broadcast live on KWON radio and Cable One’s public access channel.

Audience questions ranged from dealing with Oklahoma’s growing budget crisis, education and how to attract and retain business in the state. A few questions also came up regarding the candidates’ views on upcoming state questions that will also be on the November ballot.

State budget

BACKGROUND: The state of Oklahoma is in the process of dealing with a $1.3 billion projected budget shortfall for this fiscal year, and next fiscal year is looking just as challenging. The state’s economy has suffered because of the long-reaching effects of low energy prices and an ill-timed 0.25 percent cut to the state’s income tax rate. Lawmakers had to scramble last legislative session to fill the budget hole by initiating cuts to several agencies that receive state funding.

DANIELS: The budget is the most critical thing facing Oklahoma because of the recession. Oklahoma is one of the top oil and gas producing states, and the legislature needs to protect that. Because oil and gas generates many revenues for not only state government, but also provides income for the people working in the industry, the state needs to live within its means. “For me, it’s not finding new revenue streams, it’s maximizing those which we have. Even in a downturn, our legislature just adopted a budget of almost $7 billion, of the money they allocate, not the money off the top that goes and is already earmarked.” Looking at reforming tax credits that are too generous and eliminating waste are ways to approach the budget while growing the economy.

JOBE: We have a revenue stream that has been cut drastically. “Consequently, what we have to do is prioritize the state’s needs first, and those are the core services. Last year, they tried to tackle those tax credits and tax rebates and they took off two. This next legislature is important because, not only is the budget in trouble now, but we will have a budget shortfall before this year is out. We will inherit, whoever is elected to next year’s legislature, at least a $700 million shortfall to come.” Our state services cannot afford to operate at that level, and so we have to fund those appropriately first during the session, not at the end of the session as we always have done in the past. The legislature needs to stop quibbling over small, political things at the beginning and focus on the budget.

Attracting new business

BACKGROUND: Oklahoma’s dependence on the energy sector causes a lack of diversification in other businesses. While state leaders have been able to attract big companies in aerospace and industrial supply, the economy is largely still based on the swings and volatility of oil prices. Incentives to try to attract new business to the state are not working as well as they could. Surrounding states, specifically Texas, have attracted new business growth, while Oklahoma has been struggling.

JOBE: This is the state’s number one objective. “We have not done a good job of it. The main way to grow business is to provide quality education and core services that make people want to live and work in Oklahoma.” Texas doesn’t do anything right that Oklahoma can’t also do. Texas just started 30 years ahead of Oklahoma. Texas out spends us by billions of dollars and have good infrastructure and a good school system. The total tax burden in Texas is not drastically different than Oklahoma’s. Oklahoma has to do more with opportunities and improve our education system to meet the needs.

DANIELS: “First of all, you don’t raise taxes in a recession because you can’t tax yourself out of one. You don’t compete with border states that have much lower tax rates and hope to gain business from immigration.” We have some good programs at the state level, like the Quality Jobs Act that requires a return on taxpayer investment for good permanent jobs. There are many skilled workers in the energy industry. We have to put those skills to work and attract new businesses that would benefit from the highly-skilled workforce in oil and gas.

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